Good Index Fund for Roth IRA

vindikation · #1 10-07-2005, 01:30 PM

The 2 Vangaurd funds (one Index one International) I've been looking at to put my ROTH IRA money into are:

VIMSX

VHGEX

Also what percentage would you invest in the Index fund and what percentage in International...50% & 50%?

Thanks

1C5 · #2 10-07-2005, 02:07 PM

If you look at the fees, the first one is quite a bit less in terms of % it charges.

Why did you decide on those 2? Vanguard probably has 100s on their website, just curious as to your thought process to buy these ones over all the others?

Sniper · #3 10-07-2005, 03:04 PM

FWIW, while I day trade stocks, I have allocated a portion of my port for long term investing... In that portion of my port, coincidentally, I add monthly to 2 funds (not vanguard)... one is a Mid Cap fund, and the other is a Global growth fund.

vindikation · #4 10-07-2005, 04:45 PM

[ QUOTE ]
Why did you decide on those 2? Vanguard probably has 100s on their website, just curious as to your thought process to buy these ones over all the others?

[/ QUOTE ]

I have my 401K with Fidelity, so I wanted to do something with Vangaurd in my own ROTH IRA. So I looked at the Vangaurd Index funds and found this one with a lower share price than the Vanguard 500 Index Fund plus its 5 year return is much, much better than the other Vangaurd Index funds I found.

As far as the Vangaurd Global Equity, it had the highest rating from Morningstart and the highest return over the past few years.

[ QUOTE ]
FWIW, while I day trade stocks, I have allocated a portion of my port for long term investing... In that portion of my port, coincidentally, I add monthly to 2 funds (not vanguard)... one is a Mid Cap fund, and the other is a Global growth fund.

[/ QUOTE ]

QUESTION:

What percentage do you put in the Mid Cap and what percentage do you put in the International?

Sniper · #5 10-07-2005, 11:43 PM

vind, start off with 50/50 and see how it goes... you can adjust to either rebalance or under/overweight when you make your annual (?) additions to your IRA, based on your analysis at that time.

goodguy_1 · #6 10-10-2005, 04:07 AM

I have my IRA in
VTSMX

I do monthly automatic
roth contributions thru my checking account.

vindikation · #7 10-10-2005, 11:01 AM

I was looking at VTSMX but this:

YTD Return: 2.88%
5y Avg Return: -1.73%

turned me off on it.

The VIMSX had:

YTD Return: 9.08%
5y Avg Return: 7.43%

And VHGEX:

YTD Return: 5.04%
5y Avg Return: 10.43%

I'm going to put $1000 in VIMSX & VHGEX today before the market closes. I'm keeping $2000 out to see how the funds do and readjust a deposit in them in a month or so.

Thanks for the feedback!